Question - According to a summary of the payroll of Scotland Company, salaries for the period were $500,000. Federal income tax withheld was $98,000. Also, $15,000 was subject to state (4.2%) and federal (0.8%) unemployment taxes. All earnings are subject to social security tax of 6.0% and Medicare tax of 1.5%.
Required:
(a) Journalize the entry to record the accrual of payroll.
(b) Journalize the entry to record the accrual of payroll taxes.